2 Louisiana insurance companies fail after Hurricane Ida [View all]
BATON ROUGE, La. (AP) — Insurance companies operating in Louisiana will be charged at least $100 million to pay the claims of two failed property insurers who went belly up in Hurricane Ida's aftermath. But the cost of dealing with the insolvent insurers ultimately will fall on the state after companies recoup the dollars through a series of tax credits.
The Advocate reports that the board of the Louisiana Insurance Guaranty Association — a state-sponsored safety net for policyholders -- voted for the first time since 2004 to charge insurers 1% of their net written premiums to help fill its coffers.
The guaranty fund, known as LIGA, covers claims for policyholders whose insurers become insolvent.
Its work is being triggered after the state insurance department in mid-November took control of two regional insurers whose finances tanked following Hurricane Ida: Access Home Insurance Co. and State National Fire Insurance Co.
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